Morris Beschloss: The Beschloss Perspective

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With recent statistics noting “air pockets” in the post-recession, stuttering economic recovery, new doubts are being cast on the future of America’s housing comeback. On a year-to-year basis, the expansion of additional residential construction seems to have plodded ahead at a low double-digit rate with expectations of a forthcoming pickup, even if that rate is modest by previous standards.

 While much of America’s future economic dynamism has been riveted on the overdue upgrading of the nation’s infrastructure (pipelines, bridges, dams, railroads and highways), little has been heard lately regarding commercial and industrial construction. 

It may not seem that way, when considering the relative snail’s pace of the general economic recovery, but America’s total household wealth topped $70.3 trillion by the end of 2013’s first quarter, according to the Federal Reserve Board. 

 The nation’s residential, commercial and industrial construction markets can expect a major uplift, both in the immediate and longer-term future, according to the Portland Cement Association 

When many analysts read bold-faced media headlines about the fastest rate of housing price increases in seven years — with some communities posting double-digit increases — they are claiming that housing’s happy days are here again.

 On the verge of 2013’s second half, the previously moribund commercial/industrial construction sector, which was hit hard during the Great Recession, is displaying increasing signs of recovery. 

With the early 2013 economy trending little better than last year’s state of suspended animation, the American consumer, comprising close to 70% of the nation’s $15.6 trillion gross domestic product, has maintained a sense of justifiable caution.